USD/JPY Price Analysis: Sellers attack previous resistance with eyes on 137.10

• USD/JPY remains depressed after reversing from the highest levels in six months.
• Bullish MACD signals join resistance-turned-support line, 200-DMA to prod Yen pair sellers.
• USD/JPY buyers need validation from 140.00 round figure to keep the reins.

USD/JPY holds lower ground near 137.70-60 as it prods the multi-month-old support line, previous resistance, during early Monday morning in Europe. In doing so, the Yen pair extends the previous day’s U-turn from the highest levels since late November 2022.

It’s worth noting, however, that the bullish MACD signals join the aforementioned resistance-turned-support line from mid-December 2022, around 137.65 at the latest, to challenge the USD/JPY bears.

Even if the Yen pair marks a daily closing below 137.65, the 200-DMA level surrounding 137.10, quickly followed by the 137.00 round figure, may restrict the quote’s further downside.

In a case where the Yen pair drops below 137.00, the odds of witnessing the quote’s slump towards the early April swing high of around 135.15 can’t be ruled out. Following that, a two-month-long ascending support line near 134.55 can act as the last defense of the USD/JPY buyers.

On the flip side, USD/JPY recovery may initially aim for the latest swing high of near 138.75.

However, the 50% Fibonacci retracement of the pair’s October 2022 to January 2023 downturn, close to 139.60, will presede the late November 2022 top surrounding 139.90 and the 140.00 psychological magnet to challenge short-term the Yen pair buyers.

Should the USD/JPY bulls keep the reins past 140.00, an upward trajectory towards the 61.8% Fibonacci retracement level near 142.50 can’t be ruled out.

USD/JPY: Daily chart

Trend: Bullish